Texas Gov. Greg Abbott announced a $50 million loan program for small businesses in the state impacted by the novel coronavirus pandemic, which would include restaurants. Abbott announced the program on Monday, April 13; the program comes with the help of Goldman Sachs and San Antonio-based nonprofit LiftFund. The loans are being made through the national Paycheck Protection Program (PPP) through the Small Business Administration (SBA) as well as Goldman’s larger 10,000 Small Business program.
LiftFund, which is acting essentially as an intermediary between Texas businesses and SBA, will distribute $25 million of the $50 million promised from Goldman Sachs to local businesses selected through the application process. The rest will be distributed through other local community development financial institutions in the state.
After eight weeks, each of those businesses will send paperwork to LiftFund showing how they properly used the funds for payroll and to pay bills such as rent and utilities. If everything checks out, then the loan is forgiven and the business doesn’t have to pay back the loan. SBA then sends LiftFund that allotted money from the loans, and LiftFund then pays back Goldman Sachs.
San Antonio coffee roasting company and cold-brew bar Coffeecionado owners Patricia and Clint Butler are the first food-and-drink-related recipients of the loans, along with San Antonio running store iRun Texas owners Michele and Mitch Allen.
Applications are currently being accepted on LiftFund’s webpage for loans up to $250,000. The deadline is Tuesday, June 30.